Association of Person (AOP) Registration
An AOP under Income Tax Act is an Entity or Unit of assessment.
It means two or more persons who joins for a common purpose with a view to earn an income. The term person includes any company or association or body of individuals, whether incorporated or not. Therefore , if two or more persons join hands to carry on a business but do not constitute a partnership, they may be assessed as an AOP.
An Association of Persons (AOP) or a Body of Individuals (BOI), whether incorporated or not, is treated as a ‘person’ under section 2(31) of the Income-tax Act, 1961. Hence, AOP or BOI is treated as a separate entity for the purpose of assessment under the Income-tax Act.
- Auditing and Reporting
- Filing Income Tax Returns
Frequently Asked Questions
What type of activities is generally done through an AOP?
We have come across situations where a group of individuals join together for conducting a one-time event such as Seminar, Conference, etc., forms an AOP.
Is it mandatory to File return of Income?
Every AOP / BOI whether incorporated or not has to file the return of Income if his total income exceeds the basic tax exemption limit.